Did you know there is a segment of the stock market that generates better returns than the broad market over all time timeframes… with less volatility along the way?
It’s true, and it’s probably not what you’d expect.
Sustainable investing, also known as ESG investing, is a rapidly growing trend in the financial world. ESG stands for environmental, social, and governance, which are the three classes that sustainable investors assess before making an investment decision.
Investing is all about looking towards the future. Whether you are looking towards retirement or a new boat, you invest to improve your future.
Stock prices work in a similar way. And Investors are willing to pay a premium for companies generating sustainable profits that benefit all stakeholders involved.
Now let’s explore exactly why ESG is becoming such an increasingly profitable category for investors.
Why Invest In ESG?
You’ve probably heard pundits tossing around term “sustainability.” But what does it even mean?
The truth is, it is more than just bleeding-heart causes. It is a way of determining which companies are looking to the future, not just a quick buck.
Society is working towards sustainability, and they want businesses to be doing the same. According to a study by Bank of America, 86% of consumers believe companies should address ESG issues (94% of Gen Zs and 87% of Millennials).
A company's focus on diversity, renewable energy, waste management, and corporate governance can make or break its reputation from consumers' viewpoint and, in turn, influence their purchasing decisions.
Sustainable investing strategies have outperformed the broader market in recent years, and I am confident that the gap in returns will only grow with time.
Keep reading . . .
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$7.4 Trillion Investor Reveals “Strongest Foundation” for Investing in 2020
The world’s largest asset manager will shift ALL of its active portfolios to focus on one unstoppable trend by the end of the year. With trillions of dollars to invest, this firm alone could move the market. But 42% of “smart money” institutions are investing in the same trend.
This trend is already starting to change the world, and it’s picking up more momentum. Zacks is revealing 4 exciting buys to profit from this massive opportunity.
Get the Full Story Here >>
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Below illustrates the S&P 500 ESG index's relative performance, which has outpaced its broader benchmark by roughly 3 percentage points in the past 52-weeks.
A company that practices sustainable environmental, social, and governance policies is not only well-run but also cares about advancing humanity. Sustainable enterprises look beyond their next quarterly earnings and are focused on long-term goals, including global warming, employee satisfaction and community impact.
A Focus On Tech
Young tech companies are some of the most common with sustainable practices and make up a sizable portion of ESG investing. These innovation-focused companies provide us with world-changing technology, and they do it in a way that is in the best interest of humankind.
Companies like Apple, Microsoft, and Amazon are some of the largest sustainability-focused companies, and they have provided investors with tremendous returns over the past couple of decades. These companies have an excellent reputation among consumers. Their sustainable practices, combined with category-leading innovations, will continue to drive their demand and share prices in the years to come.
Takeaway
Society is evolving towards sustainability, and ESG investing is the perfect way to profit off this economic shift.
Both individuals and massive institutional investors, such as Goldman Sachs and Blackrock, have begun shifting more and more money into ESG-focused companies. In fact, ESG investments saw record amounts of capital inflows in Q1 2020… while a record amount of cash was pulled out of the broad stock market.
In the first quarter, more than $6.7 billion were invested in ESG funds – nearly as much as the $8 billion in all of 2019. This trend is clearly accelerating, and now is an ideal time to take advantage. Today, I'm releasing my brand-new Special Report, Investing for Impact: Zacks’ 4 Hottest ESG Buys. Because of the increase in demand for sustainable investing options, a handful of companies are poised to skyrocket. This report reveals those our top 4 recommendations.
The urgent report is only available until Sunday, June 28. You're invited to download it now.
Click Here to Claim Your Copy of Investing for Impact Now >>
Good Investing,
Daniel Laboe
Zacks Strategist
Daniel Laboe is an investment expert with a focus and passion for tech, previously working at a Fortune 50 company as a financial analyst and a trader for a Chicago-based proprietary trading firm.
Image: Bigstock
Is This 2020's Hottest Investing Trend?
Did you know there is a segment of the stock market that generates better returns than the broad market over all time timeframes… with less volatility along the way?
It’s true, and it’s probably not what you’d expect.
Sustainable investing, also known as ESG investing, is a rapidly growing trend in the financial world. ESG stands for environmental, social, and governance, which are the three classes that sustainable investors assess before making an investment decision.
Investing is all about looking towards the future. Whether you are looking towards retirement or a new boat, you invest to improve your future.
Stock prices work in a similar way. And Investors are willing to pay a premium for companies generating sustainable profits that benefit all stakeholders involved.
Now let’s explore exactly why ESG is becoming such an increasingly profitable category for investors.
Why Invest In ESG?
You’ve probably heard pundits tossing around term “sustainability.” But what does it even mean?
The truth is, it is more than just bleeding-heart causes. It is a way of determining which companies are looking to the future, not just a quick buck.
Society is working towards sustainability, and they want businesses to be doing the same. According to a study by Bank of America, 86% of consumers believe companies should address ESG issues (94% of Gen Zs and 87% of Millennials).
A company's focus on diversity, renewable energy, waste management, and corporate governance can make or break its reputation from consumers' viewpoint and, in turn, influence their purchasing decisions.
Sustainable investing strategies have outperformed the broader market in recent years, and I am confident that the gap in returns will only grow with time.
Keep reading . . .
------------------------------------------------------------------------------------------------------
$7.4 Trillion Investor Reveals “Strongest Foundation” for Investing in 2020
The world’s largest asset manager will shift ALL of its active portfolios to focus on one unstoppable trend by the end of the year. With trillions of dollars to invest, this firm alone could move the market. But 42% of “smart money” institutions are investing in the same trend.
This trend is already starting to change the world, and it’s picking up more momentum. Zacks is revealing 4 exciting buys to profit from this massive opportunity.
Get the Full Story Here >>
------------------------------------------------------------------------------------------------------
Below illustrates the S&P 500 ESG index's relative performance, which has outpaced its broader benchmark by roughly 3 percentage points in the past 52-weeks.
A company that practices sustainable environmental, social, and governance policies is not only well-run but also cares about advancing humanity. Sustainable enterprises look beyond their next quarterly earnings and are focused on long-term goals, including global warming, employee satisfaction and community impact.
A Focus On Tech
Young tech companies are some of the most common with sustainable practices and make up a sizable portion of ESG investing. These innovation-focused companies provide us with world-changing technology, and they do it in a way that is in the best interest of humankind.
Companies like Apple, Microsoft, and Amazon are some of the largest sustainability-focused companies, and they have provided investors with tremendous returns over the past couple of decades. These companies have an excellent reputation among consumers. Their sustainable practices, combined with category-leading innovations, will continue to drive their demand and share prices in the years to come.
Takeaway
Society is evolving towards sustainability, and ESG investing is the perfect way to profit off this economic shift.
Both individuals and massive institutional investors, such as Goldman Sachs and Blackrock, have begun shifting more and more money into ESG-focused companies. In fact, ESG investments saw record amounts of capital inflows in Q1 2020… while a record amount of cash was pulled out of the broad stock market.
In the first quarter, more than $6.7 billion were invested in ESG funds – nearly as much as the $8 billion in all of 2019. This trend is clearly accelerating, and now is an ideal time to take advantage. Today, I'm releasing my brand-new Special Report, Investing for Impact: Zacks’ 4 Hottest ESG Buys. Because of the increase in demand for sustainable investing options, a handful of companies are poised to skyrocket. This report reveals those our top 4 recommendations.
The urgent report is only available until Sunday, June 28. You're invited to download it now.
Click Here to Claim Your Copy of Investing for Impact Now >>
Good Investing,
Daniel Laboe
Zacks Strategist
Daniel Laboe is an investment expert with a focus and passion for tech, previously working at a Fortune 50 company as a financial analyst and a trader for a Chicago-based proprietary trading firm.